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Simple English definitions for legal terms
merger clause
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A quick definition of merger clause:
A merger clause, also known as an integration clause, is a part of a contract that says the contract is the final agreement between the parties involved. This means that any informal agreements or understandings made before the contract was signed are no longer valid. The purpose of a merger clause is to prevent any misunderstandings or disputes that may arise from previous discussions or negotiations. It is important to read and understand the merger clause before signing a contract.
A more thorough explanation:
A merger clause, also known as an integration clause, is a provision in a contract that states that the contract represents the parties' complete and final agreement. It supersedes all informal understandings and oral agreements relating to the subject matter of the contract.
For example, a merger clause might state:
"This agreement constitutes the entire understanding between the parties and supersedes all prior negotiations, understandings, and agreements between the parties."
This means that any previous discussions or agreements that were not included in the written contract are no longer valid or enforceable.
The purpose of a merger clause is to prevent disputes over oral agreements or understandings that were not included in the written contract. It ensures that the parties are bound only by the terms of the written agreement.